Chronicle Editor
Morris Mpala
IT’S that time of the year when we craft the national budget. Consultations are ongoing for the 2018 budget and everyone needs an input as we are one big family called Zimbabwe. Some of my wishes.
2017 budget deficit
The budget deficit has been a headache. The income and expenditure has had a negative variance and with elections it will naturally increase. The number one enemy inflation is upon us and indiscipline and policy inconsistency, serious forex challenges and bond “currency” devaluation, cash shortages, informal economical actors dominance, multiple pricing regimes, laws re-alignment still work in progress, imports dominating, exports still low due to costly production models etc, this budget is coming at a very difficult juncture. I wish for us to go back to basics to counter recurrent expenditure. Let’s keep it simple and very stupid and allow fundamentals to dictate our economic trajectory policy. We need austerity measures with zeal and will to implement these without delay.
Eat what you kill
Encourage to live within our means, cash budgeting, adherence to budgets and corporate governance (international best practice) to all ministries. No supplementary budgets.
Rationalisation of civil servants
For there to be meaningful productive levels the Government will have to reduce their costs by close to 60 percent on its current ratios. The Government can lay off some of its employees but not just the guys doing the job but across the board. It can early retire some of its dedicated workforce. Trim excess fat by addressing freebies and allowances/perks and or revise remuneration. We can ask senior employees to forgo their two months salaries in a year. They can adjust the working conditions but without affecting the lower grades. Audit the civil work force and weed out ghost workers, absent employees and dead employees still on pay roll. Explore performance appraisals and performance based remuneration.
Let parastatals and State owned enterprises (SOEs) be tax/NSSA compliant. Any job losses will be compensated by jobs created by the enabling environment as Government will have enough resources for developmental projects. NSSA can avail funding plus their own retrenchment packages to those affected to start income generating projects but subject to an enabling environment. This is short term pain for long term gain.
Commercialisation and privatisation
The need to privatise and commercialise parastatals and State entities is now. Government should now demand dividends in all entities it has shareholding in whether major or otherwise. Let’s explore the idea of turning these stakes into debt (with an exit strategy for Goverment) than “equity” to encourage performance to aid revenues.
Formalisation of the informal sector
An innovative and robust taxing regime that includes the informal sector and plugs other loop holes in the collection system of taxes but humanely done without punishing few already compliant entities.
Zambezi water project
We are a primary producer and last season wasn’t bad but it must not fool us. In the long term the Zambezi water project is the future.
Cancer levy
Cancer is now the number one killer, awareness and prevention and investment in cancer industry is the way to go. Above all eating healthily is the game and why not tax the source of the health scare. Sin tax: introduce tax for cigarettes, gambling, alcohol, and polluting entities. Channel these funds towards cancer awareness and insist on preventive measures. Sugar tax: tax junk food, fizzy drinks to sustain cancer awareness. Aids levy: let part of this allocation go to cancer awareness, prevention and investments.
Internal devaluation and debt settling
Let’s reduce our costs across the board by mutual consent and or legislation to increase competitiveness. We are an expensive net importing nation. I would like to see increased commitment to settle arrears to our international stakeholders to reduce our country risk.
Charity begins at home and the Government should also increase settlement of its local obligations and same should be encouraged among Government related enterprises/parastatals.
Allocations
I would love to see ministries reduced, amalgamated and some done away with utterly.
Defence: reduced
Education: increased to seek research and development and entrepreneurial inclination to financial literacy and reducing economic ignorance. Infrastructure and Tourism: increased to ignite production and generate exports. Health: increase medical utility, cancer awareness and consolidate HIV/Aids initiatives thus increased productivity at workplaces.
Year of listening
We have to listen to each other and also listen to the economic voice of reason. We need to work together as one economy to increase confidence, trust and perception among all stakeholders both within and without Zimbabwean borders. The need to encourage frank and honest discussions among economic stakeholders.
Individual economic actors
Last but not least I would like every individual to say what they will bring to the table in 2018 for Zimbabwe to achieve its goals. Are you going to reduce your imports consumption, be less corrupt, help marginalised and disadvantage people of our community, volunteer more, reduce wastage, reduce pollution, collaborate more, live within your means, support policies that aid the economy. Ask not what Zimbabwe or minister can do for you but what you can do for Zimbabwe to be a better economy. Everyone has a part to play. Ask the man in the mirror to change his ways for a better tomorrow and work with each other like never before. We need the political, physical, emotional and spiritual will to achieve our goals as individuals and as a country.
Best wishes for 2018.
IF YOU LIVE IN BYO PLEASE CONSERVE WATER
IF YOU LIVE IN ZIMBABWE PLEASE USE ELECTRICITY SPARINGLY: SOS (SWITCH OFF SWITCHES)
IF YOU LIVE ON PLANET EARTH PLEASE PRESERVE THE ENVIRONMENT
Morris Mpala is the managing director of MoB Capital Limited, a Bulawayo-headquartered micro-finance company with footprint across the country
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